JPY Trading Outlook (23-06-2014)

USD/JPY There was some catching up with recent Nikkei gains at week’s end, putting pressure on the yen. Rumors, then confirmation, Abe would make a speech about the new third arrow plan next Tuesday, after the Diet session’s end, raised some hopes the govt would not disappoint yet again. USD/JPY found buyers early by the daily Kijun at 101.80 and then rode a higher Nikkei, Tsy yields and oil prices into the daily Cloud and to the 100-DMA by 102.20. The Cloud top dips to 102.62 on Monday. US’s data calendar is light next week. Japan kicks the week off with the June Mfg PMI. CPI, Jobs & Household Spending are on tap later in the week. EUR/JPY initially fell away from its test of 200-DMA, Kijun & 50% Fibo resistance by 138.90, but a handsome EZ C/A surplus may have eventually won over hearts and minds for a firm finish. Despite doings in Ukraine and the ME, the default mkt position is one of risk-taking, which favors yen sellers. EUR/JPY’s weekly Cloud top held at 137.63 this week and it will begin to climb again in July. Some buy stops are above 139, with an eye toward the 140.09 June highs.